The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1887-01-12

wholly paid for by appropriations out OF the
general fund at q cost OF S722 O00 OF which sum
$4,000 has been paid since April /. 1877.
Also, the construction of the three additional
| hospitals for the insane has been entirely pro-
vided for out of the general fund. The amount
| now authorized by appropriations to be drawn
from the general fund on account OF these in hs
been paid at the close Of the last fiscal year the
/ sum OF ST47,255. 73.
The appropriations from the general fund for
| extraordinary expenses from the LIST of No
| vember 1888 until the LIST of November, 1856, as
/ taken from the report of the Auditor Of State,
| sapping of revenues which were only intended
| TO pay the current expenses OF administering the
The amount expended for like purposes from
January 1, 1871, to November l, 1883, was perhaps
| as large.
| tempt to include many small specific appropria-
| tons or the increase in current expenses OF our
great and growing Safe, occasiOned by tue legtt-
| Innate expansion OF our public institutions. the
/ creation of new Offices and the enlargement oil
the duties Of older offices.
| In 1885 the General Assembly, by an act APP
| proved February 81. 1885, authorized the Cover
nor, Auditor and Treasurer TO make temporary
loan of 100000 redeemable at the pleasure of the
State after five years and payable in ten years. at
4 rate of interest not exceeding per cent. per
annum. 1t was also provided IN the same act
porary loan Indebtedness of the State. part,
could be funded at lower rate OF interest, and
that such officers could negotiate and secure the
/ funding of such temporary loan at such lower
rate, they were authorized to fund such indebted
/ five years nor more than ten years.
There was outstanding at the time temporary
1879, payable April l. 1889, and redeemable at the
pleasure OF the State after April l. 1884, bearing
interest at the rate OF per cent. per annum.
| 1t was ascertained that such Indebtedness could
/ be funded at lower rate of interest Bids were
| invited through public advertisement upon each
| OF said loans, and the loans were awarded to Mr..
/ and best bidder. The bonds OF the state, dated
| April 1. 1885, were issued, denominsted Regis
| rod POI Tam
n ns nv xSicb loan he State reeeiyed premium Of
I3s per cent, amounting to S. 80 and the sum Of
| s6OS $50 was paid into the State Treasury to the
credit OF the general fund.
tered Funding Bond, Temporary Loan"
for S5S5000 were issued payable IN ten
years from April l. lSs5 bearing interest az
| said bonds the State redeemed and cancelled said
outstanding temporary loan bonds OF s5Sl,OOO
| premium on the new bonds of IL per cent,
| amounting to Sl095675 was received and paid
into the State Treasury 10 the credit oil the gen
The premium received upon the $4,000 was
much smaller than received upon the soo5,oOO
fund loan because the law required the former TO
be redeemable at the pleasure OF the State after
five years, while the latter was payable 10 ten
years, capitalists regarding IL as very desirable
Investment
The General Assembly, by an act approved March
81, 1885, authorized the Governor, Auditor and
Treasurer to make a temporary loan of S5oO0O0 by
issuing and selling the bonds OF the State, re-
deemable in not less than five nor more than ten
| years, bearing interest at rate not exceeding
per cent per annum, payable semi-annually, TO
meet the appropriations for the new State house.
According to public notice OF the sale OF said
bonds said loan was awarded to the lowest aud
best bidder, and in pursuance OF such bids the
bonds OF the State were issued denomlnate1
Registered New State-house Bond. Temporary
Loan" dated May l, 1885. payable in ten years,
bearing So per cent. interest per annum, payable
semi-snnually, upon which loan the State re-
ceived a premium of IL per cent, amounting to
$500 and the sum Of 500 5oo was deposited in
house fund, as the law directed.
The credit Of the State has so improved that
said loans were negotiated at a rate OF interest;
with the premiums received, that viii make said
loans average about 81 per cent and the Ietun I
ing Of said temporary loan OF April /. 1879, VIII
make an annual saving of sS,T75 in interest.
Under provisions Of IAN act to provide q fund
! for the permanent endowment OF the Indians
university and for the investment OF the same, .
approved March 3, 1883, sum exceeding 10000
of said permanent endowment fund had been
paid into the State Treasury ard, the state need.
! ing loan to meet casual deficit in the revenue
and to pay the interest on the public debt,
the sum OF $50 600 was, in pursuance 10 section
Of said act, transferred tfrom said fund to the
credit of the general fund; As provided in said
act a nOn-negotisble bond OF the State for said
amount was made and issued by the Governor
With the State seal. to the trustees Of said uni
vtrsity dated October l, 1885, payable in htty
years at the option Of the State bearing per cent
Interest, to be paid emf annually on the LIST days
OF May and November in each year until said bono
: is paid. =, A.,
general fund was $500 Co., and, deducting such
amount from the amount OF the said extraordi
ing said years 1888, 1884 1885 and 1886 the sum o.
s5S $50 OF has been paid from the revenues OF the
1t viii be apparent to you that the State can no
engage in the construction OF expensive ana eiaD
crate Improvements without increasing the tA1
sary moneys to meet the additional cost OF suct
improvements. Considering the excellent credl
Of the State / have no hesitation In re commend
! ba ! 1
eDce to increasing the rate OF taxation
The rate of interest which the State would be re
quired 10 pay would not exceed one-nalt OIL IN
rate which individual taxpayers OF the Stat
would be compelled to pay, and a sinking fund q
pay the bonds as rapidly as the state would nav
the right to redeem would finally liduidate Tn
| States Indebtedness.
? The net receipts OF the general Juno rom az
sources. exclusive of S57 $50 10 advanced BY coun
ties and 500 2575 received on loans, for the hSca
year ending October 81, 1885, were 81 .424 2i9 II
elusive of advances returned TO counties durin
such year, pursuant to appropriations, wer
S20S} OS5 81.
The net receipts to the same fund, exclusive @
advances by counties, for the fiscal year endin
% October 81 1856. 81 ,42l $685. while the eS
2 OF advances returned by counties. durin
such year sP gITssq9sannt- The SPpr TId
lures OF the last year not equal TO those OF tn
former year. because the revenues OF the stat
+. have not been sufficient to meet the approprii
The State is paying annually about one-ffth
its entire revenue as interest on its domesti
debt which consists OF nOn-negOtiabe schOt
bonds OF So 9O4 7SS issued in 1857 and 1868, bea
ing per cent. interest: a non-negotiable Purdu
University bond of $4,000, issued in 1881, bea
ing per cent interest, and a n0n-neg0tia0
State University bond of S5c 600, bearing > p'
cent interest; and earnestly recommend
duction in the interest on the S3,90i 1922 scho
bonds TO 3 or 81 per can't, as believe tue re
enues to the school fund would still continue
be sufficient.
IT, however, il should be deemed preferabl
inasmuch as the State borrow money at
much lower rate OF interest," a loan could
authorized to pay OF the entire nOn-negotiab
% school bonds and, after the payment thereof pr
vide that the money shall be distributed to u
III counties in the manner heretofore provided
law and that all school funds be loaned In Il
manner now directed at a rate OF interest not e
ceeding per cent per annum. Either method,
believe would meet with popular approval
III funding loan Tor sucn purpose was negOl
ated al a rate OF interest not exceeding per cen
which believe to be possible, Il would result
annual saving OF interest OF SUI, LAB 90 bss1d
providing large amount TO be loaned TO the pc
pie of the State at a fair rate OF interest.
IL is evident that the revenues are barely SUI
cient to meet the current expenses OF the Sta
90 government and this, with decreased apprais
= nent OF nearly s5iOO0O00 of the property ia q
80 State subject TO taxation, shows conclusvely IN
the money necessary TO complete aud equip q
new public buildings must be raised either by
II creased taxation or the negotiation OF temp0ra